‘sup?
This afternoon.
PETA members dressed as giant pink and blue ‘gentleman’s jerkins’ persuade commuters in Dublin city centre that “the only way to manage the cat and dog overpopulation crisis is to have their animal companions spayed or neutered”.
Firm but fair.
Fight!
Rollingnews
You may recall how, last week, Social Democrats TD Stephen Donnelly told how a family in Kilkenny – Sarah and Dominic and their two children – were being evicted.
He explained that the eviction was taking place after the Government sold the family’s mortgage to a US investment firm called, Mars Capital.
Earlier today, during Leaders’ Questions, Mr Donnelly returned to the matter and explained that Mars Capital is owned by The Matheson Foundation, a registered charity.
From the debate:
Stephen Donnelly: “Last week I outlined how a US vulture fund structured its Irish subsidiary, Mars Capital, to avoid paying taxes in Ireland on its Irish profits. I believe these vulture funds are about to pull off the largest avoidance of tax on Irish profits in the history of the State. The scale is likely to be in the tens of billions of euro in missed taxes. These are taxes being avoided by Irish companies on Irish domestic profits earned off the backs of distressed Irish families.”
“Irish charities are being used to play a key part in this tax avoidance. Mars Capital is owned by a registered charity, the Matheson Foundation. The stated mission of the charity is to help Irish children to fulfil their potential. It contributes to causes such as the Irish Society for the Prevention of Cruelty to Children, ISPCC, Barnardos and Temple Street Children’s University Hospital. The charity does not mention its ownership of Mars Capital.”
“One reporter I spoke to believes that the charity might own more than 200 companies. At a time when public faith in the charity sector has been rocked yet again, a children’s charity is being used to help a vulture fund avoid paying taxes to the Irish State on its Irish profits.”
“It is very effective. In spite of annual revenues in year one of over €14 million, Mars Capital paid total corporation tax to the Irish State of €250. Companies such as Mars Capital are known as section 110 companies. Section 110 was introduced in 1997 to allow the International Financial Services Centre, IFSC, win global securitisation deals. These involve global companies structuring global assets in Ireland. Their profits were not earned here, so section 110 helps these companies avoid paying taxes here on those profits. The vulture funds are now using section 110 companies to avoid paying taxes in Ireland on Irish profits. Section 110 companies were not created to re-route Irish domestic profits to offshore locations. However, my understanding is that almost all of the vulture funds whose profits are generated in Ireland have section 110 status.”
“How big is the scale of the tax avoidance by these vulture funds? Irish companies typically pay approximately 30% tax on their profits, between corporation tax and dividends tax. Vulture funds typically target minimum returns on their Irish investments of 15% to 20% per year over seven to ten years. That means a €100 million investment by a vulture fund should generate €100 million in taxes for the Irish State.”
“To be clear, the level of taxes being missed by the Irish State is likely to be well over half of the total value of all of the distressed loan books sold by NAMA, IBRC and private banks.”
“Will the Government direct Revenue to cancel section 110 status for all vulture funds in Ireland? Will it provide Revenue with the extra resources to execute this quickly and to reclaim back taxes? Will it direct the Charities Regulator to pull charity status where that status is being used to help avoid Irish tax on Irish profits? Will it direct NAMA to not sell assets to vulture funds if these funds are structured to avoid Irish taxes on Irish profits?”
Tánaiste Frances Fitzgerald: I thank the Deputy. Section 110 of the Taxes Consolidation Act 1997 sets out the taxation regime for securitisation and other structured finance transactions. Under the Taxes Consolidation Act, a qualifying section 110 company is chargeable to tax at 25% but has its profits computed by reference to the rules available to trading companies. As a result, the companies are generally structured in such a way that they are effectively tax-neutral. A company must notify the Office of the Revenue Commissioners in advance of its intention to fall within the scope of section 110. The companies are required to pay their taxes and file their tax returns in the same way as all other companies and are subject to the same monitoring by the Revenue Commissioners, an important point to note.”
“I understand that officials from the Department of Finance and the Revenue Commissioners are currently examining recent media coverage concerning the use of certain physical vehicles for property investments – indeed, Deputy Donnelly has raised this issue before, as has Deputy Pearse Doherty. Should these investigations uncover tax avoidance schemes or abuses which erode the tax base and cause reputational issues for the State, then appropriate action will be taken and any necessary legislative tax changes that may be required will be put forward for the consideration of the Minister for Finance. Therefore, I can confirm that the Department of Finance and the Revenue Commissioners are examining this issue with a view to taking action.”
“I would also respond to the Deputy’s point in regard to charitable status. Clearly, this issue needs examination by the Charities Regulator. I have been in contact with the Charities Regulator and asked him to examine the particular issues which the Deputy has raised about the granting of charitable status and how it is being used by certain companies at present.”
Donnelly: “I thank the Tánaiste for her reply. I am very glad to see the Government is taking this seriously. We could be looking at missed taxes to the Irish State to the tune of €1 billion to €2 billion a year, or even more. If it is €1 billion a year, that equates to some €20 million a week in missed taxes. The section 110 structures were set up for a legitimate reason in 1997 under the Taxes Consolidation Act. They are now being used by nearly all of the vulture funds to take profits generated in Ireland and, very frustratingly, to take profits generated in Ireland by ordinary, decent families trying to pay their way out of negative equity and distressed mortgages. Section 110 was never intended to be used to pull Irish-generated profits out of the country. This is happening on a scale that is potentially worth tens of billions of euro.”
“I acknowledge what the Tánaiste said about the Revenue Commissioners. Will she come back to the House on this issue as a matter of urgency, ideally before the recess? What we should be doing in the finance Bill which is coming up with the budget, or even before that, is shutting this down.”
Fitzgerald: “I repeat that officials from the Department of Finance and the Revenue Commissioners are currently examining this issue, in particular the use of certain vehicles for property investments. This is clearly an issue of concern, particularly the point the Deputy raised yesterday in regard to the use of charitable status, which I believe needs investigation. The Minister for Finance will take note of the outcome of the investigations that Revenue and the Department of Finance are undertaking at present on this issue. There is no doubt that, if it needs to be addressed, he will address it in a comprehensive way in the budget. It is important that we first have a full analysis to have the entire picture put on the table and see what the results of the investigations are to determine whether changes are necessary.
Transcript via Oireachtas.ie
Previously: The Story Of Sarah And Dominic
19th and early 20th century cabinet cards, deftly supered by artist Alex Gross, who (and this is but one minor part of his oeuvre) paints over the collectible photo portraits, transforming the subjects into superheroes and fictional beasts.
Arlette Lyons, Fiona Walsh, Ruth Bowie, Sarah McGuinness, Julie O Donnell, Agatha Corcoran, Deirdre Conroy and Gaye Edwards, all from the group Terminations For Medical Reasons outside the Dáil in 2013
Further to the defeat of Independent 4 Change TD Mick Wallace’s bill to allow for abortion in cases of fatal foetal abnormalities…
Gaye Edwards, who lost her first child, Joshua, to anencephaly, writes:
I like to think that our collective input influenced the recommendations that so many UN member states made when Ireland’s human rights record came under review in May 2016. Together, they called on Ireland to change its highly restrictive abortion laws. Working with Amnesty has also given weight to our assertion that we are not criminals, and that by denying us treatment in our own country, Ireland is violating our human rights.
I feel that sharing my experience has helped to spark a public discourse in Ireland which was previously absent. The Irish people are getting a better understanding of how the 8th Amendment to the Constitution (which puts the right to life of the foetus on equal footing with that of the woman), affects not only people in circumstances like mine, but in other circumstances too. It is no longer a simple black and white argument, but a rich and nuanced discussion, full of the complexity of real-life situations.
The majority of Irish people are caring and compassionate, and don’t want suffering to continue. This needs to be reflected in our laws. I have realised from my interactions with Amnesty that these views are shared by people all over the world. Witnessing their support for me has been both humbling and uplifting.
In my own experience, some older, more conservative relatives had expressed sympathy and support for my husband and me as we tried to navigate our own tragedy. Yet they never discussed the injustice of it with anyone else as the subject of abortion has always been considered taboo. Now, however, they share our story freely, and are proud of our quest for justice.
So, what next? Well I think the short answer is “more of the same!” We will continue to tell our stories in order to help educate people generally about the nature of fatal foetal anomalies.
We will continue to tell our stories to help women who have suffered losses in secret, realise that they did nothing wrong – that they are not criminals, and they are not alone.
We will continue all this until we have a legal and social environment that respects women’s choices and no longer punishes tragedy.
Previously: On Message
Garda Commissioner Noirin O’Sullivan before the the Policing Authority last month
It’s being reported that ten Garda Superintendents are to be promoted to the rank of Chief Superintendent, while 18 Garda Inspectors are to be promoted to the rank of Superintendent.
The Irish Times reports:
The Government has approved the appointment of 28 senior officers to the Garda to fill vacancies in key areas.
The move comes a fortnight after Garda Commissioner Nóirín O’Sullivan warned there was a “profound risk” to the standard of policing in the Republic’s because so many senior posts were unfilled.
…chair of the Policing Authority, Josephine Feehily, told Ms O’Sullivan while she supported the Garda’s request for additional resources, the level of appointments sought “seemed on the high side”.
…The new promotions have been announced just before a new Garda appointments process in introduced. Under this system the Policing Authority will have a role in the promotion process to higher ranks.
There you go now.
Appointment of 28 gardaí to senior roles approved (Irish Times)
Previously: We Need To Talk About The Guards
Rollingnews
Yikes.
Thanks David
A sobering widget for post-Brexit British holidaymakers.
38?
If you’re lucky.
HAVE A GO, MATE: Costa Brexit: How much has EU vote affected your summer holiday spends? (Southport Visitor)
(H/T: Reppy)
Lorna writes:
Eh… I am not sure the Regency Hotel’s [in Drumcondra, Dublin 9] idea of an Adult Dance is quite the same as other people’s idea of one…
*Twirl*
Kori writes:
Bright Club Dublin has been going on for almost two years and it features a mix of comedians and scientists/academics as comedians for one night only. The next Bright Club is on Thursday, July 21 at 7.30pm, featuring: Kilian Hanlon, Louise McHugh, Matthew Collins, Rob Coyle, Steve Bennett, Gareth Lyons, Ruth Hunter and our headliner Edwin Sammon.
Get tickets here
